Securities and Exchange Board of India(Sebi) penalised NSE Data and Analytics Ltd for its failure to segregate IT infrastructures and manpower between itself and its parent firm National Stock Exchange (NSE), and has been directed to deposit a penalty of Rs 12 lakh within 45 days.
Sebi identified irregularities related to the backup of records and the Business Continuity Plan/Disaster Recovery policy.There were also delays in sending acknowledgment letters to investors, inconsistencies in system audit reports and the cyber security audit framework. In addition, the company also failed to validate KYC records.
Sebi the KYC registration agency on September 6-7, 2023, to address possible violation of regulatory norms and the period covered April 1, 2022, to July 31, 2023.
Sebi said, “There was no segregation of any IT infrastructures (server, network, data centers and IT security), along with the IT manpower, responsible for handling server management, network, data centers and IT security between the noticee (NSE Data And Analytics) and its parent organization (NSE)”.
NSE Data And Analytics responded that they have taken many corrective steps.